VMware said Monday that it sees no signs of an end to the freefall in information-technology spending.
First quarter will be quarter of indecision, says Paul Maritz
The Palo Alto company is among the hottest firms in the software business with its industry leading virtualization products. But it is proving far from immune to the global economic downturn.
“All the indications we have is that the first quarter is going to be a quarter of indecision” as far as corporate budgets and IT spending go, said CEO Paul Maritz. “We’ve never seen this level of uncertainty before.”
VMware posted fourth quarter revenue of $515 million, up 25 percent and ahead of Wall Street expectations, and net income that grew 42 percent to $111 million. But its stock fell when it estimated first quarter sales would come it at $475 million with a 10 percent decline in license revenue.
“We don’t believe 2009 budgets have been finalized by our customers,” said CFO Mark Peek on a conference call.
The sputtering technology market is likely to continue into 2009 with spending more likely to take place in the second half of the year, he said.
